FTSE250 engineering group sees turnover slip

Bodycote Vacuum Furnace

ENGINEERING group Bodycote has seen revenues dip in the first four months of the year but has maintained its expectations for 2016.

The Manchester-based FTSE250 company, which supplies heat treatment, metal joining and coatings services, is continuing to suffer from the exchange rate pressures, the decline in oil prices, slow growth in China, and the embargo on global trade with Russia.

Group revenue was £192.4m for the four months to the end of April, 4.9% lower than the same period last year and 9.1% lower at constant exchange rates.

After taking into account the group’s exit from Brazil last year and a £20m restructuring programme it has now completed, like-for-like revenues were lower by 2.7% (7% lower at constant exchange rates).

Aerospace revenue was flat in the period, while car and light truck revenue increased. Sales to the oil and gas sector were lower by 51.2% on a like-for-like basis and at constant exchange rates, reflecting weak demand and a strong comparable in the equivalent period of 2015.

Close